The government will save $580.5 million over five years by changing how it pays for mental health services from GPs and allied health providers. Rebates will be reduced for patients who see a GP for a referral to mental health services.

Australian Medical Association president
Andrew Pesce
criticised the decision to slash spending on a program which, a few weeks ago, the government said had been shown to be cost-effective.

Dr Pesce said a recent independent review of the mental health Better Access initiative found that 90 per cent of GPs had provided a service under the program, and more than 85 per cent of these patients had received a mental health care plan from their usual GP.

“We’re very disappointed," Dr Pesce said.

“We acknowledge there are groups of people who are not being reached by that program, but we don’t understand why you should cut funding in places where government studies prove it has been working."

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The government has also drawn flak for the delay in funding. The biggest funding increase will not come until the final year of the program’s – 2015-16.

Under the new model, a two-tiered rebate will be introduced for mental health care plans and consultations taking between 20 minutes and 39 minutes will attract a lower rebate than those taking 40 minutes or more.

Rebates will continue to be higher for GPs who have completed mental health skills training.

“It’s not good for GPs," Dr Pesce said. “The excuse that’s been given is that GPs are not taking as long as is needed, but there are a whole lot of things that GPs do outside the consultation."

The budget includes an extra $104.4 million over the next four years to fund magnetic resonance imaging (MRI).

As well, the government will invest $138.7 million over four years on the national bowel cancer screening program to give those aged 50, 55 and 65 the option of a screening test.

The industry has welcomed the $45 million of additional funding over four years for Medicare locals, but is concerned about the lack of detail about the scope and role of the primary healthcare organisations or the role GPs will play in them.

The president of the Royal Australasian College of Physicians, John Kolbe, said he would look to the next Council of Australian Governments meeting, in June, for further detail about Medicare local networks. “We were hoping the federal budget would provide more information on Medicare locals, specifically on how they will link services by working with the local hospital networks and lead clinician groups," Professor Kolbe said.